Recent research from TSB has revealed that first-time buyers who negotiate on the asking price of their property can achieve substantial savings. On average, these buyers were able to reduce the price by £22,900. The findings come from a Censuswide poll of 1,000 first-time buyers who purchased a home within the past five years, highlighting how negotiation remains a key tool for cutting costs when entering the housing market.
The study found that 91% of first-time buyers had successfully negotiated a lower price, while only 9% were unable to secure a reduction. Younger buyers, aged between 18 and 34, achieved the largest savings, with an average reduction of £24,400. This suggests that those at the beginning of their property journey are particularly proactive when it comes to negotiating favourable terms.
TSB’s latest quarterly mortgage report also highlighted broader trends affecting first-time buyers. The typical deposit in the UK fell by 5% year-on-year in the fourth quarter, averaging 18% of the property price, or around £40,000. This decrease in deposit requirements could make it easier for buyers to enter the market, especially when combined with effective negotiation strategies.
The report also highlighted demographic differences across regions. The average age of first-time buyers across the UK remained at 31 years old. London recorded the oldest first-time buyers at an average of 34, followed closely by the South East at 33. Meanwhile, the youngest buyers were found in the North East, Scotland, West Midlands, and Yorkshire & The Humber, where the average age was just 30 years.
Mortgage terms remained stable overall at an average of 31 years, although across the UK they fell slightly to 30 years. On average, first-time buyers viewed four properties before placing an offer. A small percentage, around 1%, saw more than ten properties before deciding. This demonstrates the importance of exploring multiple options to identify the best possible deal.
The time taken from first viewing to making an offer averaged five months. However, the process varied widely: for one in twenty buyers, it took a full year, while another small group took between one and two years. The speed at which offers were made also differed, with 68% of buyers submitting an offer within a week of viewing the property they eventually purchased. A further 14% made an offer on the very same day.
When it came to finalising a purchase, most buyers required around two offers to succeed. However, 5% of first-time buyers needed four or more offers before securing their home. This illustrates the competitive nature of the housing market and the persistence often required to achieve a successful purchase.
Reflecting on their experiences, a third of recent first-time buyers admitted that they would negotiate more aggressively in the future. Additionally, 31% said they would broaden their property search, and 29% indicated they would establish a clearer budget before beginning the buying process. These insights highlight the importance of preparation and strategy when entering the housing market.
Craig Calder, TSB’s director of secured lending, emphasised the value of negotiation and careful planning. He said: “Most first-time buyers are successfully lowering a property’s purchase price through negotiation, sometimes achieving significant reductions. It’s crucial to build time into the process for multiple viewings, set a realistic budget, and approach negotiations strategically. Finding the right deal on the right home can be transformational for both financial stability and overall wellbeing.”
The research also aligns with positive signals from the wider housing market. The Royal Institution of Chartered Surveyors (RICS) survey, published at the same time, shows renewed confidence among property professionals. A net balance of 22% of respondents expect sales to rise over the next three months, while 34% anticipate an increase in sales volumes over the year ahead.
Analysts point to lower interest rate expectations and the removal of uncertainties from the autumn budget as key drivers behind this improving sentiment. These factors suggest that buyers may face more favourable conditions in 2026, particularly if lenders continue to offer competitive rates.
RICS also reported that a net balance of 35% of survey respondents expect house prices to rise over the next year, marking the most positive outlook since late 2024. Tarrant Parsons, RICS head of market research, noted that sustained reductions in borrowing costs could be a catalyst for stronger buyer demand throughout 2026.
Recent trends in mortgage pricing support this optimism. Several major lenders, including HSBC UK and Nationwide, have cut rates in recent weeks, offering more competitive deals to both first-time buyers and home movers. Mark Harris, chief executive of mortgage broker SPF Private Clients, advised buyers to shop around: “With lenders reducing their rates, it’s wise to compare products rather than automatically taking a transfer from your existing lender. This can ensure you secure the best possible deal.”
Overall, the research highlights that first-time buyers who actively negotiate, plan their budget carefully, and explore multiple properties can achieve significant savings. In addition, broader improvements in the housing market and competitive mortgage rates are providing further support, offering hope for a more accessible property market in the year ahead.
For those entering the market in 2026, the message is clear: preparation, persistence, and negotiation are key to securing the right property at the best price. By combining these strategies with favourable market conditions, first-time buyers have the opportunity to make meaningful financial gains while successfully stepping onto the property ladder.
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